SAN ANTONIO – The U.S. Treasury Department reports that the average tax refund this year has climbed to more than $3,400 — approximately $340 higher than last year.
The averaged increase has sparked plenty of conversation among taxpayers comparing notes on whether they saw a noticeable bump in their bank accounts.
KSAT asked people on Facebook and at Thursday’s Fiesta Fiesta kickoff if they received larger-than-expected refunds or no refund at all.
“Is that $340 in the room with us?” Noel Martinez commented on Facebook.
“I got a WHOPPING $185 back,” Mark Muniz also commented.
At Thursday’s Fiesta Fiesta, Angie Gonzalez said she received more than expected.
“It was worth the wait,” Gonzalez said. “So, I was crossing my fingers that I didn’t have to pay, and I didn’t have to pay. But everybody, I hope you all got taxes back, extra money to spend at Fiesta.”
So, what’s behind the difference between the tax returns?
Why some refunds increased
The most common reason people receive a refund is simple: they paid more in taxes throughout the year than they ultimately owed, according to Walt Tilleman with Tammy’s Tax Service in San Antonio.
This happens when too much money is withheld from paychecks.
This year, perks from President Donald Trump’s “One Big Beautiful Bill Act” also played a role in boosting refund amounts:
- Expanded standard deductions for seniors: Older taxpayers benefited from an additional $6,000 added to their standard deduction, reducing taxable income and increasing potential refunds.
- Tax relief on overtime and tips: Workers who earned income through overtime or tips saw relief. Some of that income was no longer taxed, which led to larger refunds.
- Enhanced credits for families: Low-to moderate income families, especially those with multiple children, saw significant gains. The Child Tax Credit increased to $2,200 per child. When combined with the Earned Income Tax Credit, many families received sizable refunds.
Who didn’t see much change?
Not everyone saw a windfall. Tilleman said single filers earning moderate to higher incomes were more likely to break even. That’s because:
- They typically fall into higher tax brackets
- They may not qualify for income-based credits
- Their withholdings are often more closely aligned with what they actually owe
The bottom line
A bigger refund doesn’t necessarily mean a better financial outcome. It often reflects how much tax was prepaid during the year, Tilleman said.
For many households, especially families and lower-income workers, this year’s changes delivered a meaningful boost.
Whether your refund was large, small or nonexistent, the variation comes down to income level, tax credits and how much was withheld in the first place.